What: Klepierre, a major mall operator, is focusing its efforts on malls in Europe's most affluent and dynamic big cities. This strategy aims to offer experiences beyond traditional shopping to better compete with the rise of online retailers.

Why it is important: With the rapid growth of online retail, particularly fast-fashion giants like Shein, physical retail spaces must evolve to stay relevant. Klepierre's strategy of concentrating on high-performing urban centers and enhancing the in-mall experience with entertainment and services reflects a shift in the retail industry.

Klepierre is adapting to the challenges posed by online retailers by focusing on malls in major European cities and offering unique experiences such as yoga classes, concerts, and movies. Chairman Jean-Marc Jestin emphasizes that physical retail is not disappearing but concentrating in dynamic urban areas. By reducing the number of its shopping centers from 330 to over 70, Klepierre aims to create more attractive and tech-savvy retail environments. This strategy also aligns with the growing trend of omni-channel retailing, where brands like Sephora and Mango blend online and offline sales. The recent acquisition of the RomaEst shopping center in Rome highlights Klepierre's commitment to strengthening its presence in key European markets.

Big city malls the future for Klepierre in battle with online